UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT

 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported)
August 27, 2025

graphic

PHOTRONICS, INC.
(Exact name of registrant as specified in its charter)

Connecticut
 0-15451
 06-0854886
(State or Other Jurisdiction of Incorporation) (Commission File Number)
(IRS Employer Identification No.)

15 Secor Road, Brookfield, CT
 
 06804
(Address of principal executive offices)
 
 (Zip Code)

Registrant’s Telephone Number, including area code (203) 775-9000

(Former name or former address, if changed since last report)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
COMMON STOCK, $0.01 par value per share
PLAB
NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.
Results of Operations and Financial Condition.
 
On August 27, 2025, Photronics, Inc. (the “Company”) issued a press release reporting third quarter fiscal 2025 results.

On August 27, 2025, the Company will conduct a conference call with respect to its financial results and other matters during which it will also disclose a slide presentation.

A copy of the press release is furnished as Exhibit 99.1 to this report and a copy of the slide presentation is furnished as Exhibit 99.2 to this report. The information contained in this Item 2.02 and the attached Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)
Exhibits
Press Release dated August 27, 2025.
Photronics Q3 2025 Financial Results Conference Call August 27, 2025 slides.

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 PHOTRONICS, INC.
 
 (Registrant)
 
 
 
 By:
/s/ Christopher J. Lutzo
 
 Name: Christopher J. Lutzo
 
 Title:
Vice President,
 
 
 General Counsel and Secretary
     
Date:  August 27, 2025
 
 


Exhibit 99.1
 
 
For Further Information:
Ted Moreau
VP, Investor Relations
469.395.8175

Photronics Reports Third Quarter Fiscal 2025 Financial Results

BROOKFIELD, Conn. August 27, 2025 (GLOBE NEWSWIRE) — Photronics, Inc. (NASDAQ:PLAB), a worldwide leader in photomask technologies and solutions, today reported financial results for its third quarter of fiscal year 2025 ended August 3, 2025.

Commenting on the third-quarter performance, Chairman and CEO George Macricostas said, "Photronics delivered very good results in our fiscal third quarter with revenue, profitability and EPS ahead of expectations. Looking ahead, we remain focused on operational efficiency to maintain our excellent standard of maximizing customer cycle times. We will further accelerate internal investment efforts to enhance geographic revenue diversification and position the company for sustained revenue and earnings growth.”

Third Quarter Fiscal 2025 Results

 •
Revenue was $210.4 million, down 0.3% year-over-year and 0.3% sequentially.

•
GAAP Net income attributable to Photronics, Inc. shareholders was $22.9 million, or $0.39 per diluted share, compared with $34.4 million, or $0.55 per diluted share, in the third quarter of 2024 and $8.9 million, or $0.15 per diluted share, in the second quarter of 2025.

•
Non-GAAP Net income attributable to Photronics, Inc. shareholders was $29.4 million, or $0.51 per diluted share, compared with $31.9 million, or $0.51 per diluted share in the third quarter of 2024 and $24.3 million, or $0.40 per diluted share, in the second quarter of 2025.

•
IC revenue was $147.8 million, down 5% year-over-year and 5% sequentially.

•
FPD revenue was $62.6 million, up 14% from the same quarter last year and 14% sequentially.

•
Cash, cash equivalents and short-term investments at the end of the quarter were $575.8 million, of which $396.8 million was associated with our Joint Ventures of which we own 50%.

•
Cash generated from operating activities was $50.1 million, cash invested in organic growth through capital expenditures was $24.8 million, and cash returned to shareholders through share repurchases was $20.7 million.

•
The Board of Directors approved an increase of $25.0 million to the share repurchase authorization.

Fourth Quarter Fiscal 2025 Guidance

For the fourth quarter of fiscal 2025, Photronics expects Revenue to be between $201 million and $209 million and non-GAAP Net income attributable to Photronics, Inc. shareholders to be between $0.42 and $0.48 per diluted share.

Webcast

A webcast to discuss these results is scheduled for 8:30 a.m. Eastern time on August 27, 2025.  The call will be broadcast live and on-demand on the Events and Presentations link on the Photronics website. Analysts and investors who wish to participate in the Q&A portion of the call should click here. It is suggested that participants register fifteen minutes prior to the call's scheduled start time.

About Photronics

Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information on the company can be accessed at www.photronics.com.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially.  Please refer to Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements after the date of this release to conform these statements to actual results.

Non-GAAP Financial Measures

Non-GAAP Net Income attributable to Photronics, Inc. shareholders and non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders, are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations below.

PHOTRONICS, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)

 
  
Three Months Ended
    
Nine Months Ended
  
 
  
August 3,
    
May 4,
    
July 28,
    
August 3,
    
July 28,
  
 
  
2025
    
2025
    
2024
    
2025
    
2024
  
 
                              
Revenue
  
$
210,394
    
$
210,992
    
$
210,984
    
$
633,524
    
$
644,318
  
                                         
Cost of goods sold
    
139,539
      
133,086
      
135,846
      
409,228
      
410,674
  
                                         
Gross Profit
    
70,855
      
77,906
      
75,138
      
224,296
      
233,644
  
Gross margin %
    
33.7
%
    
36.9
%
    
35.6
%
    
35.4
%
    
36.3
%
                                         
Operating Expenses:
                                        
                                         
Selling, general and administrative
    
18,423
      
18,099
      
19,436
      
55,624
      
56,753
  
 
                                        
Research and development
    
4,271
      
4,090
      
3,555
      
12,618
      
11,291
  
 
                                        
Total Operating Expenses
    
22,694
      
22,189
      
22,991
      
68,242
      
68,044
  
                                         
Other operating gain
    
-
      
-
      
1
      
-
      
90
  
                                         
Operating Income
    
48,161
      
55,717
      
52,148
      
156,054
      
165,690
  
Operating Margin
    
22.9
%
    
26.4
%
    
24.7
%
    
24.6
%
    
25.7
%
                                         
Non-operating (loss) income, net
    
(9,428
)
    
(25,786
)
    
10,145
      
(10,232
)
    
26,931
  
                                         
Income Before Income Tax Provision
    
38,733
      
29,931
      
62,293
      
145,822
      
192,621
  
 
                                        
Income tax provision
    
9,594
      
5,714
      
14,124
      
34,209
      
48,998
  
                                         
Net Income
    
29,139
      
24,217
      
48,169
      
111,613
      
143,623
  
                                         
Net income attributable to noncontrolling interests
    
6,248
      
15,356
      
13,781
      
37,009
      
46,804
  
                                         
Net income attributable to Photronics, Inc. shareholders
  
$
22,891
    
$
8,861
    
$
34,388
    
$
74,604
    
$
96,819
  
                                         
Earnings per share attributed to Photronics, Inc. shareholders:
                                        
                                         
Basic
  
$
0.40
    
$
0.15
    
$
0.56
    
$
1.24
    
$
1.57
  
 
                                        
Diluted
  
$
0.39
    
$
0.15
    
$
0.55
    
$
1.23
    
$
1.55
  
                                         
Weighted-average number of common shares outstanding:
                                        
                                         
Basic
    
57,937
      
60,793
      
61,815
      
60,274
      
61,681
  
 
                                        
Diluted
    
58,068
      
60,974
      
62,414
      
60,567
      
62,369
  

PHOTRONICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)

 
  
August 3,
    
October 31,
  
 
  
2025
    
2024
  
 
            
Assets
            
 
            
Current assets:
            
Cash and cash equivalents
  
$
479,521
    
$
598,485
  
Short-term investments
    
96,277
      
42,184
  
Accounts receivable
    
190,875
      
200,830
  
Inventories
    
63,490
      
56,527
  
Other current assets
    
42,073
      
33,036
  
                 
Total current assets
    
872,236
      
931,062
  
                 
Property, plant and equipment, net
    
838,988
      
745,257
  
Other assets
    
41,541
      
35,740
  
                 
Total assets
  
$
1,752,765
    
$
1,712,059
  
                 
Liabilities and Equity
                
                 
Current liabilities:
                
Current portion of long-term debt
  
$
11
    
$
17,972
  
Accounts payable and accrued liabilities
    
174,914
      
165,839
  
                 
Total current liabilities
    
174,925
      
183,811
  
                 
Long-term debt
    
16
      
25
  
Other liabilities
    
39,824
      
47,464
  
                 
Equity:
                
Photronics, Inc. shareholders' equity
    
1,125,551
      
1,120,864
  
Noncontrolling interests
    
412,449
      
359,895
  
Total equity
    
1,538,000
      
1,480,759
  
                 
Total liabilities and equity
  
$
1,752,765
    
$
1,712,059
  

PHOTRONICS,  INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

 
  
Nine Months Ended
  
 
  
August 3,
    
July 28,
  
 
  
2025
    
2024
  
 
            
Cash flows from operating activities:
            
Net income
  
$
111,613
    
$
143,623
  
Adjustments to reconcile net income to net cash
                
provided by operating activities:
                
Depreciation and amortization
    
59,234
      
61,613
  
Share-based compensation
    
10,003
      
9,841
  
Changes in operating assets, liabilities and other
    
(20,876
)
    
(22,003
)
                 
Net cash provided by operating activities
    
159,974
      
193,074
  
                 
Cash flows from investing activities:
                
Purchases of property, plant and equipment
    
(120,588
)
    
(87,733
)
Purchases of short-term investments
    
(96,571
)
    
(100,558
)
Proceeds from maturities of short-term investments
    
42,148
      
44,696
  
Government incentives
    
1,469
      
1,541
  
Other
    
(57
)
    
(4
)
                 
Net cash used in investing activities
    
(173,599
)
    
(142,058
)
                 
Cash flows from financing activities:
                
Repayments of debt
    
(17,969
)
    
(4,500
)
Common stock repurchases
    
(97,422
)
    
-
  
Proceeds from share-based arrangements
    
2,120
      
1,074
  
Net settlements of restricted stock awards
    
(2,013
)
    
(3,002
)
                 
Net cash used in financing activities
    
(115,284
)
    
(6,428
)
                 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash
    
10,129
      
(6,454
)
                 
Net (decrease) increase in cash, cash equivalents, and restricted cash
    
(118,780
)
    
38,134
  
Cash, cash equivalents, and restricted cash, beginning of period
    
601,243
      
501,867
  
                 
Cash, cash equivalents, and restricted cash, end of period
  
$
482,463
    
$
540,001
  

PHOTRONICS, INC.

Reconciliation of GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders to Non-GAAP Net income and Earnings per Share attributable to Photronics, Inc. shareholders
(in thousands, except per share amounts)
(Unaudited)

 
  
Three Months ended
  
 
  
August 3,
    
May 4,
    
July 28,
  
 
  
2025
    
2025
    
2024
  
 
                  
GAAP Net income attributable to Photronics, Inc. shareholders
  
$
22,891
    
$
8,861
    
$
34,388
  
FX (gain) loss
    
14,258
      
31,111
      
(4,068
)
Estimated tax effects of FX (gain) loss
    
(3,663
)
    
(8,337
)
    
914
  
Estimated noncontrolling interest effects of above
    
(4,130
)
    
(7,376
)
    
681
  
Non-GAAP Net income attributable to Photronics, Inc. shareholders
  
$
29,356
    
$
24,259
    
$
31,915
  
                         
Weighted-average number of common shares outstanding - Diluted
    
58,068
      
60,974
      
62,414
  

                       
GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders
  
$
0.39
    
$
0.15
    
$
0.55
  
Effects of non-GAAP adjustments above
    
0.12
      
0.25
      
(0.04
)
Non-GAAP Diluted earnings per share attributable to Photronics, Inc. shareholders
  
$
0.51
    
$
0.40
    
$
0.51
  


Exhibit 99.2

 August 2025  Investor Presentation 
 
 Safe Harbor Statement  This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and uncertainties. We refer you to the risk factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subsequent filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results for the Company to differ materially from those contained in our projections or forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the accuracy of any forecasts or estimates, and we are not obligated to update any forward-looking statements if our expectations change.  2 
 
 Corporate Overview 
 
 Europe  4%  Taiwan  34%  China  26%  Korea  19%  US  17%  Photronics Overview (Nasdaq: PLAB)  $856M  Revenue  $212M  Operating Income  $228M  Operating Cash Flow  $1.21B  Market Cap  8/21/2025  ~1,900  Employees  ~675  Customers  1969  Founded  A Global Merchant Market Leader of Photomasks used in Lithographic Imaging for Semiconductor and Flat Panel Display production  Revenue By Geographic Origin  33%  27%  18%  17%  5%  Revenue By Product Group  All data reflects Trailing Twelve Month figures unless otherwise noted  Totals may differ due to rounding  27%  47%  22%  4%  4  Mainstream  50%  High-End 50% 
 
 Strategic Global Footprint  IC: Integrated Circuit | FPD: Flat Panel Display  5  Allen, Texas  Boise, Idaho  Brookfield, Connecticut  HQ  Bridgend, Wales  Cheonan, Korea  Hsinchu, Taiwan   Xiamen, China  Dresden, Germany   Hefei, China  Taichung, Taiwan   Largest commercial mask maker in Taiwan.   Only high end capable commercial mask maker in US.   IC  FPD  IC & FPD 
 
 Photomasks: Critical Enabler for IC and FPD Manufacturing  Integrated Circuit (IC) photomasks are used to transfer circuit patterns onto semiconductor wafers during the fabrication of integrated circuits.  Photomasks are glass substrates used in lithographic systems to transfer the pattern of semiconductor and flat panel display designs  Light Source  Photomask  Reduction Lens  Wafer  Stage  6  Flat Panel Display (FPD) photomasksare used in the fabrication of flat screen televisions, PC monitors, tablets, mobile devices and other flat panel displays.  Exposure Process used to Create a TFT Circuit Pattern 
 
 Compelling Investment Thesis  A global leader in the merchant photomasks industry critical for semiconductor manufacturing  Favorable Industry Trends  7  FAB regionalization/ reshoring of the semiconductor industry   Captives increased outsourcing to merchant suppliers  Node migration drives ASP expansion and revenue growth  Foldable displays and higher value masks drive FPD opportunity   Premier operational execution enables preferred supplier status  Consistent delivery of cash flow for strategic flexibility  Operational Excellence 
 
 IC: New Chip Designs Drive Photomask Demand  Photomasks are the foundation of wafer manufacturing and critical to the semiconductor manufacturing process   A global leader of mask production  Advances in semiconductor chip designs drive Photronics revenue  Consumer Electronics  Medical Devices  8  Automotive  Industrial  Networking Communications  Aerospace & Defense 
 
 Global Presence and Supply Chain Regionalization  Our IC manufacturing footprint aligns with customer global semiconductor production regionalization trends, supported by governments globally  Photronics first mover advantage in China has delivered strong revenue growth and cash flow generation  U.S. capacity and capability expansion supports the reshoring of chip production in the U.S.  PLAB IC Locations  Top 5 Semiconductor Countries:Taiwan, South Korea, Japan, China, U.S.  9 
 
 Node Migration Drives Mask Set Value  Nodes  Mask Value  10  Mask pattern complexity / Mask count per IC Design / Impact of Mask performance on IC yield  Drives higher individual mask ASP, more layers per mask set, and higher barriers of entry for competitors  Currently  participating  Planning to   participate 
 
 FPD: Advanced Displays are Driving Innovation   Photronics leverages expertise gained from IC mask production into FPD mask production  Consumer electronics with larger, high-performance displays increase the complexity of mask production  Panel makers are developing AMOLED production processes to increase substrate size to G8.6, requiring larger, high-quality advanced masks  Customers rely on Photronics for its market leading AMOLED technology  11 
 
 Competitive Advantages  Global Footprint  Close to customer  Aligned with end markets  Flexible supply chain  Technology Leader  Process expertise  Advanced Process-of-Record  High barriers to entry  Commercial Excellence  Customer first  Trusted partner  Wafer yield enhancement  Technology roadmap enabler  Operational Excellence  Responsive delivery  High yields  Cost control  Supply chain optimization  Teamwork and execution  12 
 
 Structural Improvement to Profitability  CAGR: 10% (2017 – 2024)  CAGR: 19% (2017 – 2024)  Gross Profit  ($ in millions)  Annual Revenue  ($ in millions)  Operating Profit  ($ in millions)  CAGR: 32% (2017 – 2024)  Free Cash Flow*  ($ in millions)  CAGR: 59% (2017 – 2024)  13  *Free Cash Flow is a non-GAAP financial measure. See reconciliation of Operating Cash Flow to Free Cash Flow in the Appendix. 
 
 Capital Expenditures  The Capital Intensity Ratio is defined as Capex divided by Revenue  * 2025 reflects $200M capex guidance divided by consensus revenue estimates as of August 26, 2025.   Multi-Beam Mask Writer expands technical and production capability through improved cycle time and extends complex patterning opportunities  MBMW Write Time Advantage  Technology Node  100  80  60  40  20  0  Est. Write Time (Hours)  65nm 45nm 32nm 22nm 14 nm 10nm 7nm  14 
 
 Fiscal Q3 2025 Financial Results 
 
 FQ3 2025 Summary  FQ3 2025  $210.4M  Revenue  33.7%  Gross Margin  22.9%  Operating Margin  $0.39  Diluted EPS  $0.51  Non-GAAP Diluted EPS1  FQ2 2025  $211.0M  36.9%  26.4%  $0.15  $0.40  FQ3 2024  $211.0M  35.6%  24.7%  $0.55  $0.51  1See reconciliation included in this presentation  16  Revenue recovered in the U.S. at the high-end and grew in Korea for both IC and FPD offset by geopolitical uncertainty; maintain long-term demand driven by regionalization, node migration, and overall semiconductor demand  Gross margin of 33.7% resulted from better-than-expected revenue  Operating margin also benefited as both revenue and gross margin were higher-than-expected; non-GAAP Diluted EPS of $0.51 reflects a greater profitability contribution from Photronics, Inc. compared with FQ2 2025  Repurchased 1.18 million shares for $20.7 million. 
 
 Revenue by Product Line  $M  3Q25  Q/Q  Y/Y  High-End*  53.6  (10%)  8%  Mainstream  94.2  (3%)  (12%)  Total  147.8  (5%)  (5%)  Recognized a high-end recovery in the U.S. on strong order patterns  Both High-End and Mainstream expected to continue experiencing node migration to smaller IC geometries  Demand in Asia tempered because of geopolitical and tariff related concerns  *IC: 28nm and smaller; FPD: G10.5+, AMOLED and LTPS   Totals may differ due to rounding  Technological capabilities drives high-end market leadership  Strong demand from customers in Korea and China continues  Strength in higher end mobile applications and benefit from larger, more complex panel sizes using AMOLED display technology such as G10.5 and G8.6  $M  3Q25  Q/Q  Y/Y  High-End*  53.5  23%  11%  Mainstream  9.1  (21%)  36%  Total  62.6  14%  14%  IC  FPD  17 
 
 Operating cash flow positive across all major geographic regions  FQ3 capex expanded IC facility and capacity in the U.S. & end-of-life tool replacement globally  Capital allocation:  Organic growth investments: target capex of $200M in fiscal 2025 with a portion to expand U.S. operations as previously announced  Business development initiatives: leverage and enhance core competencies  Return cash to shareholders: Repurchased $97M Fiscal YTD; Increased authorization by $25M, $28M currently authorized  Balance Sheet and Cash Flow Metrics  $M  3Q25  2Q25  3Q24  Cash, cash equivalents and Short-term investments  575.8  558.4  606.4  Debt  0.03  0.03  20.1  Operating Cash Flow  50.1  31.5  75.1  Capital Expenditures  24.8  60.5  24.4  18 
 
 FQ4 2025 Guidance   Assumptions:  Cautious demand environment and tariff uncertainty continues  Continued node migration towards higher end  Weighted average diluted shares reflects opportunistic stock repurchases through FQ3 2025  Reiterated fiscal 2025 capex target of $200 million  Revenue ($M)  201 – 209  Operating Margin  20% - 22%  Diluted non-GAAP EPS  $0.42 - $0.48  Diluted Shares (M)  ~58  Full-year Capex ($M)  ~200  19 
 
 Appendix 
 
 Non-GAAP Financial Measures  Non-GAAP Net Income attributable to Photronics, Inc. shareholders, non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders and Free Cash Flow are "non-GAAP financial measures" as such term is defined by Regulation G of the Securities and Exchange Commission, and may differ from similarly named non-GAAP financial measures used by other companies. The attached financial supplement reconciles Photronics, Inc. financial results under GAAP to non-GAAP financial information. We believe these non-GAAP financial measures that exclude certain items are useful for analysts and investors to evaluate our on-going performance because they enable a more meaningful comparison of our projected performance with our historical results. These non-GAAP metrics are not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss), Net income (loss) per share, Net Cash provided by operating activities or any other measure of consolidated results under U.S. GAAP. The items excluded from these non-GAAP metrics, but included in the calculation of their closest GAAP equivalent, are significant components of the condensed consolidated statement of income and must be considered in performing a comprehensive assessment of overall financial performance. Please refer to the non-GAAP reconciliations on the following page.   21 
 
 Non-GAAP Financial Measures  22 
 
 Non-GAAP Financial Measures  23